Question

Megan, a seller, tells the party buying her home that the property will soon be part of the public water system. She makes this claim based on erroneous information supplied to her by the city. The buyer relies upon this information and moves forward with the purchase of the home. This is an example of ______.

Answer 1

The buyer relies upon this information and moves forward with the purchase of the home. This is an example of Innocent misrepresentation.

What Is Innocent Misrepresentation?

Misrepresentation in general is a legal term that means “a false statement of fact that has the effect of inducing someone into a contract.” It originates from English common law, but has been adopted as a legal principle in the United States. It is a statement that is either untrue, or highly misleading (as opposed to a statement of opinion).

Innocent misrepresentation is one of the three recognized varieties of misrepresentations in contract law. Essentially, it is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. So in the above example, if the seller didn’t know the stereo was actually old, he would only be liable for an innocent misrepresentation.

In the real world, however, it is often the case that because the other two varieties of misrepresentation (negligent and fraudulent) are much more difficult to prove, often this is the best course of action.

Learn more about Misrepresentation  on:

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